US CFTC boss says Binance hack 'proves his point' about need for crypto market regulations
Michael Selig, the chairman of the US Commodity Futures Trading commission, on Friday addressed the hack of Binance that resulted in the largest cryptocurrency theft in history. Mr Selig spoke about the Binance incident during an appearance on CNBC's Squawk on the Street, and said the hacking ordeal "proves our exact point in proposing regulations for crypto markets earlier this month". The CFTC…
Michael Selig, chairman of the US Commodity Futures Trading Commission (CFTC), commented on the Binance hack during a CNBC appearance, stating that the incident serves as a stark reminder of the need for crypto market regulations. Selig emphasized that the crypto market remains largely unregulated and lacks the safeguards present in traditional financial systems.
He expressed the CFTC's willingness to allow exchanges to register with the agency, which could help prevent future incidents. Binance, the world's largest cryptocurrency exchange, reported losing $6.3 billion in a security breach, the largest theft in crypto history. The company claims it will cover all losses, while attributing the incident to a compromised DevOps engineer's laptop.
The Binance hack occurred shortly after the CFTC sued the exchange and its former CEO, Changpeng Zhao, in 2023 for breaching trading and derivatives laws. Binance CEO Richard Teng sought to reassure users, stating that the company is working tirelessly to resolve the issue. Despite the growing popularity of cryptocurrencies, concerns persist regarding their regulatory framework and environmental impact due to energy-intensive mining processes.
Written by urgent.news from The National UAE's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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